ComplaintsforPreferred Settlement Services

• Initial Complaint

  08/18/2023

  Complaint Type:

  Order Issues

  Status:

  Answered

  More info

  I presented a cancellation of a residential real estate contract signed by both the Buyer (ME) and the Seller with the ****** deposit I made to be disbursed $9000.00 to me and $500.00 to the seller and $500.00 to realtor and Preferred Settlement Services wouldn't cut me a check right then and there. He has a business relationship with the realtor who sends him clients for closings and title insurance and so his loyalty is to him, even though by law when presented with a cancellation of a sales contract signed by both parties he was playing games with my money. His obligation is to cut the check when presented with proper paperwork which he indeed was, he has been and continues to hold my deposit hostage even with the proper paperwork. He said he was going to circulate the signed cancellation around to see if the parties were still on board, I said she signed the cancellation of contract it doesn't matter if she's still on board or not, she put her signature to a legal document and there's no going back and changing her mind, there's no sellers remorse on a legal document you already signed, just like a purchase and sale agreement once it's inked it's a done deal, like I said this person can't be impartial or trusted because of the business relationship with the sellers realtor.

  

  Business response

  08/20/2023

  Dear Better Business Bureau,
  
  We appreciate the opportunity to respond to the complaint filed against Preferred Settlement Service on 8/18/2023 (ID Number *********.
  
  On January 1, 2023, the complainant (Complainant) entered into a purchase agreement to buy a property in Palmetto, Florida. Preferred Settlement Services was designated as the title and escrow agent for the transaction, with a closing date set on or before 02/28/2023.
  
  However,before the closing, the Complainant informed the seller that he would not adhere to the terms of the contract. Consequently, the seller declared the buyer in default, resulting in a dispute regarding the status of the deposit.
  
  Both the buyer and seller obtained their own attorneys, and litigation ensued. It is important to note that Preferred Settlement Services has never represented either party in the dispute and has only acted as a neutral escrow agent.
  
  On 08/17/2023, the Complainant arrived unannounced at our ******** office with a document allegedly signed by the seller, detailing how the escrow funds were to be released. He demanded an immediate check for the specified amount. We explained that the document and disbursement request needed authorization from the seller and their attorney before we could issue a check. The Complainant grew agitated, loud, and aggressive within our office before leaving.
  
  After the Complainant left, we promptly forwarded the document to the seller and their attorney and requested approval for the funds' release. On the same day,08/17/2023, at 5:34 p.m., we received an email from the seller's attorney stating, "Please do not release those funds as this matter is currently in litigation regarding who is actually *********** those funds. I am agreeable to you retaining those funds in your escrow account during the pendency of the litigation, unless you would prefer to file in the underlying litigation as an interpleader to have those funds deposited into the registry of the Clerk of Court."
  
  After receiving this response, we promptly emailed the Complainant on 08/18/2023 at 8:40 a.m., forwarding him the above message from the sellers attorney, and stating that we could not release the escrow funds due to the ongoing litigation. We reiterated that our role is that of a neutral party and that it is not within our capacity to release funds when one party objects. We advised the Complainant to contact his attorney and work to resolve the matter with the seller.
  
  Subsequently,the Complainant filed a complaint with the Better Business Bureau without providing further notice to Preferred Settlement.
  
  In accordance with the terms of the contract, when conflicting demands for the deposit are received, the escrow agent must retain the deposit in escrow. In this case, we received conflicting demands from the Complainant and the seller.As a result, we are required to continue holding the deposit in escrow until the dispute is resolved.
  
  Unfortunately,despite our best efforts to explain the facts and law concerning this matter,the Complainant remains misinformed about Preferred Settlements rights and obligations under the contract.
  
  We firmly believe that the Complainant's allegations against Preferred Settlement are baseless, unfair, and an attempt to pressure us into disbursing the funds in a way that is most favorable to the Complainant. While we acknowledge the frustration experienced by all parties involved, we must prioritize resolution through the terms of the contract and applicable laws.
  
  Nevertheless,to alleviate any doubts for the Complainant, we will immediately take steps to interplead the deposit with the registry of the court. This will, of course,increase the legal expenses of the Complainant (including reimbursement of our attorneys fees, which is why we have not done so previously), but now appears to be the only way for us to remove ourselves from the dispute between the parties.
  
  We want to emphasize that Preferred Settlement Services remains dedicated to impartiality and will not favor one party over the other. We are committed to strictly adhering to contractual obligations while complying with the regulations that govern escrow services within the state of Florida.
  
  If you have any questions or require any additional information, please do not hesitate to contact me.
  
  Sincerely,

  Preferred Settlement Services 

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